CRH 2024 Full Year Results

CRH, a leading provider of building materials solutions, reported fourth quarter and full year 2024 financial results.

Key Highlights

• Industry-leading performance driven by unmatched scale and differentiated strategy
• Strong Q4 and FY; another year of double-digit growth in Adjusted EBITDA* and EPS
• 11^th consecutive year of margin expansion¹ underpinned by commercial and operational excellence
• Significant portfolio activity; $5.0 billion invested in value-accretive M&A
• $1.1 billion invested in growth capex; capitalizing on attractive organic growth opportunities
• Increasing quarterly dividend to $0.37 (+6% y/y); commencing new $0.3 billion quarterly share buyback
• Significant financial capacity to support future growth and value creation
• Positive outlook for FY 2025; supportive underlying trends across key markets expected to continue
• Expect FY 2025 Net income of $3.7 billion to $4.1 billion; Adjusted EBITDA* of $7.3 billion to $7.7 billion

Jim Mintern, Chief Executive Officer, said:

“2024 was a strong year for CRH, driven by our customer-connected solutions strategy and leading positions of scale in attractive, higher-growth markets. We delivered another year of double-digit profit growth and an 11th consecutive year of margin expansion, reflecting a continued focus on commercial management and operational excellence across the organization. The strength of our balance sheet enabled us to invest $5 billion in 40 value-accretive acquisitions while also returning $3 billion of cash to shareholders through dividends and share buybacks. The outlook for our business remains positive, underpinned by favorable demand and positive pricing momentum, leaving us well positioned for another year of growth and value creation ahead.”

_{* Represents a non-GAAP measure. See ‘Non-GAAP Reconciliation and Supplementary Information’ on pages 14 to 16.
¹ Based on IFRS financial reporting to 2022 and U.S. GAAP for 2023 & 2024.}

Performance Overview

Three months ended December 31, 2024

Fourth quarter 2024 total revenues of $8.9 billion (Q4 2023: $8.7 billion) were 2% ahead of 2023. Net income was 24% ahead of 2023 at $0.7 billion (Q4 2023: $0.6 billion) and Adjusted EBITDA* of $1.8 billion (Q4 2023: $1.6 billion) was 12% ahead, driven by pricing progress, operational efficiencies and contributions from acquisitions. Organic Adjusted EBITDA* was 10% ahead of Q4 2023. CRH’s net income margin of 8.0% (Q4 2023: 6.6%) and Adjusted EBITDA margin* of 20.0% (Q4 2023: 18.3%) were ahead of
the prior year period. CRH’s basic earnings per share for the fourth quarter was 4% higher than the prior year at $1.03 (Q4 2023: $0.99). Basic earnings per share pre-impairment* was 12% higher than the prior year at $1.45 (Q4 2023: $1.30).

• Americas Materials Solutions’ total revenues were 1% behind the fourth quarter of 2023, as price increases and contributions from acquisitions were offset by lower activity levels due to weather disruption in certain regions. Adjusted EBITDA was 20% ahead of the prior year period, driven by strong pricing, operational efficiencies and good cost management.
• Americas Building Solutions’ total revenues were 2% ahead of the prior year period, primarily driven by contributions from acquisitions as well as growth in energy and water markets. Adjusted EBITDA was 9% lower than the prior year period, impacted by adverse weather and against a strong prior year comparative.
• International Solutions’ total revenues were 7% ahead of Q4 2023 driven by pricing progress and contributions from acquisitions. Adjusted EBITDA was 9% ahead of the prior year period, driven by commercial excellence measures, lower energy costs and operational efficiencies.

Year ended December 31, 2024

2024 was another year of industry-leading financial performance for CRH, underpinned by our differentiated strategy along with resilient underlying demand in key end-use markets, continued commercial progress and contributions from acquisitions. Total revenues of $35.6 billion (2023: $34.9 billion) were 2% ahead of 2023. Net income was 15% ahead of 2023 at $3.5 billion (2023: $3.1 billion) and Adjusted EBITDA* of $6.9 billion (2023: $6.2 billion) was 12% ahead, reflecting the continued delivery of the Company’s customer-connected solutions strategy, positive pricing, ongoing cost control and further operational efficiencies. Organic Adjusted EBITDA* was 10% ahead of 2023. CRH’s net income margin of 9.9% (2023: 8.8%) and Adjusted EBITDA margin* of 19.5% (2023: 17.7%) were well ahead of the prior year. CRH’s basic earnings per share was 16% higher than 2023 at $5.06 (2023: $4.36). Basic earnings per share pre-impairment* was 18% higher than 2023 at $5.48 (2023: $4.65).

• Americas Materials Solutions’ total revenues were 5% ahead of 2023, primarily driven by price increases across all lines of business and positive contributions from acquisitions offsetting the impact of adverse weather. Adjusted EBITDA was 22% ahead, driven by pricing improvements, operational efficiencies and good cost management, along with gains on the disposal of certain land assets.
• Americas Building Solutions’ total revenues were 1% ahead of 2023, with contributions from acquisitions more than offsetting the adverse weather impact on trading activity. Adjusted EBITDA was 4% lower than the prior year, impacted by lower activity levels in certain markets, subdued new-build residential demand and against a strong prior year comparative.
• International Solutions’ total revenues were 1% behind 2023 due to lower activity levels in certain markets and the divestiture of the European Lime operations which was partly offset by positive contributions from acquisitions. Adjusted EBITDA was 7% ahead, driven by commercial excellence measures, lower energy costs, a continued focus on cost management and operational efficiencies along with contributions from acquisitions.

Acquisitions and Divestitures

In 2024, CRH completed 40 acquisitions for a total consideration of $5.0 billion, compared with $0.7 billion in 2023.

The largest acquisition in 2024 was in Americas Materials Solutions where CRH acquired an attractive portfolio of cement and readymixed concrete assets and operations in Texas for a total consideration of $2.1 billion. In addition, Americas Materials Solutions completed a further 20 acquisitions and Americas Building Solutions completed 10 acquisitions for a total spend in the Americas of $3.8 billion. International Solutions completed nine acquisitions for a total spend of $1.2 billion, including the acquisition of a majority stake in Adbri Ltd (Adbri), a market leader in cement and aggregates in Australia.

CRH completed 10 divestitures and realized proceeds from divestitures and disposal of long-lived assets (including deferred divestiture consideration received) of $1.4 billion, primarily related to the divestiture of the European Lime operations. No divestitures occurred in the prior year.

During the three months ended December 31, 2024, CRH completed 12 acquisitions for a total consideration of $1.1 billion, compared with $0.1 billion in the same period of 2023. Americas Materials Solutions completed six acquisitions, Americas Building Solutions completed three acquisitions and International Solutions completed three acquisitions.

During the three months ended December 31, 2024, cash proceeds from divestitures and disposal of long-lived assets were $0.1 billion.

Dividends and Share Buybacks

The Company’s continued strong cash generation and financial flexibility provide the opportunity to continue to return cash to shareholders, while at the same time investing in the business and delivering on CRH’s strategic growth initiatives.

In line with the Company’s policy of consistent long-term dividend growth and supported by its strong financial position, the Board approved dividends totaling $1.40 per share in 2024, a 5% increase on the prior year (2023: $1.33). The Board has also declared a new quarterly dividend of $0.37 per share, representing an annualized increase of 6% on 2024. The dividend will be paid wholly in cash on April 16, 2025, to shareholders registered at the close of business on March 14, 2025. The ex-dividend date will be March 14, 2025.

As part of the Company’s ongoing share buyback program, CRH repurchased approximately 15.9 million ordinary shares in 2024 for a total consideration of $1.3 billion. On February 26, 2025, the latest tranche of the share buyback program was completed. The Company is commencing an additional $0.3 billion tranche to be completed no later than May 2, 2025.

Innovation and Sustainability

CRH is committed to driving profitable growth by providing its customers with innovative solutions that support the transition to a more sustainable built environment. The Company’s focus on continuous innovation will better position CRH to respond to the changing needs of its customers, accelerate and scale new technologies and drive a positive impact across three global challenges of water, circularity and decarbonization. CRH continues to enhance its capabilities to meet these opportunities and challenges through investment in new technologies, such as FIDO AI, the artificial intelligence leak detection software company, as well as new partnerships through the CRH Ventures Accelerator programs. Through these efforts, CRH continues to develop and deliver innovative solutions for its customers while making progress on its industry-leading target to deliver a 30% reduction in absolute carbon emissions by 2030.

2025 Full Year Outlook

We expect positive underlying demand across our key end-use markets in 2025, underpinned by significant public investment in critical infrastructure, combined with increased re-industrialization activity in key non-residential segments. This backdrop is expected to support overall demand levels and further positive pricing across our business.

Our North American businesses expect continued positive momentum in infrastructure activity, supported by robust state and federal funding. Non-residential activity continues to benefit from secular tailwinds in key growth areas. Although the residential sector continues to be supported by strong long-term demand fundamentals, the new-build segment is expected to remain subdued while repair and remodel activity remains resilient.

In our International operations, we expect infrastructure activity to be underpinned by government and EU funding. Non-residential construction continues to be aided by onshoring of supply chains and industrial manufacturing activity. Residential markets are expected to stabilize with structural demand fundamentals supporting a gradual recovery.

Assuming normal seasonal weather patterns and absent any major dislocations in the political or macroeconomic environment, CRH’s leading positions of scale in attractive higher-growth markets, together with our strong and flexible balance sheet, are expected to underpin another year of growth and value creation in 2025.

Americas Materials Solutions

Americas Materials Solutions’ total revenues were 1% behind the fourth quarter of 2023, as continued positive pricing and contributions from acquisitions were offset by lower volumes due to adverse weather in certain regions. Organic total revenues* were 5% behind the prior year period.

In Essential Materials, total revenues were in line with the prior year, with good pricing momentum and contributions from acquisitions offset by lower aggregates volumes. Prices in aggregates and cement were ahead by 7% and 8%, respectively. Weather-impacted aggregates volumes declined by 9% while cement volumes increased by 3%, supported by acquisitions.

In Road Solutions, total revenues were 1% behind the prior year, as reduced activity levels due to challenging weather offset improved pricing across all lines of business and ongoing state and federal funding support. Paving and construction revenues decreased by 1% with positive growth in the South region offset by lower activity in weather-impacted regions. Asphalt prices increased by 3% and volumes decreased by 8%, while readymixed concrete prices increased by 3% and volumes were flat.

Fourth quarter 2024 Adjusted EBITDA for Americas Materials Solutions of $1.1 billion was 20% ahead of the prior year driven by commercial progress, disciplined cost management and operational efficiencies. Organic Adjusted EBITDA* was 16% ahead of the fourth quarter of 2023. Adjusted EBITDA margin increased by 430bps.

Americas Materials Solutions’ total revenues were 5% ahead of the prior year as price increases and contributions from acquisitions offset lower activity levels which were impacted by adverse weather. Organic total revenues* were 1% ahead.

In Essential Materials, total revenues were 5% ahead of the prior year, supported by aggregates and cement pricing, which were ahead by 10% and 8%, respectively. Aggregates volumes declined by 3% while cement volumes increased by 1% compared to 2023.

In Road Solutions, total revenues increased by 5% driven by pricing progression and sustained activity levels through continued state and federal funding support. Asphalt prices increased by 3% while volumes, impacted by weather, declined 2% against 2023. Paving and construction revenues increased 5% versus the prior year. Readymixed concrete pricing was 6% higher than the prior year, while volumes were 1% ahead.

Adjusted EBITDA for Americas Materials Solutions of $3.7 billion was 22% ahead of the prior year with growth across all regions. Positive pricing, disciplined cost management and operational efficiencies along with gains on land asset sales offset lower volumes in certain markets. Organic Adjusted EBITDA* was 18% ahead of 2023. Adjusted EBITDA margin increased by 340bps.

Americas Building Solutions

Americas Building Solutions’ total revenues were 2% ahead of the fourth quarter of 2023, as increased demand in Building & Infrastructure Solutions and contributions from acquisitions offset adverse weather impacts. Organic total revenues* were 2% behind the prior year period.

In Building & Infrastructure Solutions, total revenues were 8% ahead of Q4 2023, supported by increased demand in energy and water markets.

In Outdoor Living Solutions, total revenues were 3% behind the prior year period as demand was impacted by adverse weather.

Adjusted EBITDA for Americas Building Solutions was 9% behind the fourth quarter of 2023 and 11% behind on an organic* basis as adverse winter weather impacted results. Adjusted EBITDA margin was 210bps behind the prior year period.

In 2024, Americas Building Solutions’ total revenues were 1% ahead of the prior year as positive contributions from acquisitions were partially offset by subdued new-build residential demand and adverse weather. Organic total revenues* were 2% behind the prior year.

In Building & Infrastructure Solutions, total revenues were 2% ahead of the prior year as contributions from acquisitions offset lower activity levels due to adverse weather conditions and subdued new-build residential demand.

In Outdoor Living Solutions, total revenues were flat compared with 2023 as unfavorable weather conditions offset increased sales into the retail channel.

Adjusted EBITDA for Americas Building Solutions was 4% behind 2023 and 6% behind on an organic* basis as adverse weather and subdued new-build residential demand impacted performance. Adjusted EBITDA margin was 90bps behind the prior year.

International Solutions

International Solutions’ total revenues were 7% ahead of the fourth quarter of 2023. Organic total revenues* were 1% behind as continued pricing progress and volume growth in Central and Eastern Europe were offset by lower activity in Western Europe, coupled with continued subdued new-build residential activity within Building & Infrastructure Solutions and Outdoor Living Solutions.

In Essential Materials, total revenues were 9% ahead of the comparable period in 2023 with strong aggregates and cement volumes as well as positive pricing and contributions from acquisitions. Aggregates volumes were 15% ahead while cement volumes were 18% ahead of the comparable period in 2023. Aggregates pricing was 6% ahead and cement pricing was 4% ahead of Q4 2023.

In Road Solutions, revenues were 9% ahead of the comparable period in 2023, with volumes and prices in the readymixed concrete business ahead of 2023 by 26% and 7%, respectively, benefiting from contributions from acquisitions as well as higher activity levels in Central and Eastern Europe. Asphalt volumes increased by 8% while pricing declined by 4% with paving and construction revenues impacted by lower activity levels in Western Europe.

Within Building & Infrastructure Solutions and Outdoor Living Solutions, total revenues were 2% behind the comparable period in 2023 as increased pricing was offset by lower activity levels.

Adjusted EBITDA in International Solutions was $0.5 billion, 9% ahead of the fourth quarter of 2023, and 10% ahead on an organic* basis, primarily driven by increased pricing, lower energy costs and operational efficiencies. Adjusted EBITDA margin increased by 30bps compared to the prior year period.

International Solutions’ total revenues were 1% behind the prior year. Organic total revenues* were 4% behind as positive pricing momentum and good volume growth in Central and Eastern Europe were offset by lower volumes in Western Europe as well as lower trading activities in the Building & Infrastructure Solutions and Outdoor Living Solutions businesses.

In Essential Materials, total revenues were 2% behind as continued pricing progress and contributions from acquisitions were offset by the divestiture of the European Lime operations. Aggregates volumes were 3% ahead of 2023 with cement volumes 5% ahead, supported by good growth in Central and Eastern Europe as well as recent acquisitions. Aggregates pricing was 4% ahead and overall cement pricing was 3% ahead of 2023.

In Road Solutions, total revenues were 2% ahead of 2023. Volumes and prices were ahead in the readymixed concrete business by 8% and 3%, respectively, benefiting from volume growth in Central and Eastern Europe as well as acquisitions in the period. Asphalt volumes and pricing declined 2% and 1%, respectively. Paving and construction revenues were behind 2023 due to lower activity levels in Western Europe.

Total revenues in Building & Infrastructure Solutions and Outdoor Living Solutions declined by 6% compared with the prior year, amid continued subdued new-build residential activity.

Adjusted EBITDA in International Solutions was $1.8 billion, 7% ahead of 2023, and 8% ahead on an organic* basis, primarily driven by increased pricing, lower energy costs and operational efficiencies. Adjusted EBITDA margin increased by 120bps compared with 2023.

Other Financial Items

Depreciation, depletion and amortization charges for the year ended December 31, 2024 of $1.8 billion were higher than the prior year (2023: $1.6 billion), primarily due to the impact of acquisitions.

Arising from CRH’s annual impairment testing process, non-cash impairment charges of $0.35 billion were recognized in 2024 (2023: $0.36 billion). These principally resulted from challenging market conditions in the Architectural Products reporting unit within International Solutions and the equity method investment in China. Gain on disposal of long-lived assets of $237 million was higher than 2023 (2023: $66 million), mainly related to the disposal of certain land assets.

Interest income of $143 million (2023: $206 million) was lower than 2023 primarily due to a lower level of cash deposits. Interest expense of $612 million (2023: $376 million) was higher than the prior year primarily due to an increase in gross debt balances and increased interest rates.

Other nonoperating income (expense), net, was an income of $258 million (2023: $2 million expense), primarily related to gains on divestitures.

Income before income tax expense and income from equity method investments was $4.7 billion (2023: $4.0 billion), and the associated tax charge of $1.1 billion (2023: $0.9 billion) represented an effective tax rate of 23%, in line with the prior year (2023: 23%).

Basic earnings per share was 16% higher than 2023 at $5.06 (2023: $4.36) due to a positive operating performance, higher gains on disposal of long-lived assets and on divestitures as well as reduced share count as a result of the ongoing share buyback program. Basic earnings per share pre-impairment* of $5.48 was 18% higher than the prior year (2023: $4.65).

Balance Sheet and Liquidity

2024 marked another year of strong cash generation for CRH with net cash provided by operating activities of $5.0 billion, in line with the prior year (2023: $5.0 billion), as higher income from operations was offset by working capital outflows.

Total short-term and long-term debt was $14.0 billion at December 31, 2024 ($11.6 billion at December 31, 2023). During 2024, a net $0.5 billion of commercial paper was issued across the U.S. Dollar and Euro Commercial Paper Programs. In January 2024, €600 million of euro-denominated notes were repaid on maturity. In May 2024, the Company issued $750 million in 5.20% notes due in 2029 and $750 million in 5.40% notes due in 2034. In July 2024, as part of the Adbri acquisition, $0.5 billion of external debt was acquired. In December 2024, the Company agreed and drew down a $750 million two-year term loan at a fixed rate of 4.91%.

Net Debt* at December 31, 2024 was $10.5 billion, compared to $5.4 billion at December 31, 2023. This increase reflects acquisitions, cash returns to shareholders through dividends and share buybacks, as well as the purchase of property, plant and equipment, partially offset by inflows from operating activities and proceeds from divestitures.

CRH ended 2024 with $3.8 billion of cash and cash equivalents and restricted cash (2023: $6.4 billion) as well as $3.8 billion of undrawn committed facilities which are available until 2029. At year end, the weighted average maturity of the term debt (net of cash and cash equivalents) was 7.5 years. CRH also has a $4.0 billion U.S. Dollar Commercial Paper Program and a €1.5 billion Euro Commercial Paper Program available. As of December 31, 2024 there was $1.2 billion of outstanding issued notes under the U.S. Dollar Commercial Paper Program and $0.3 billion of outstanding issued notes under the Euro Commercial Paper Program. CRH remains committed to maintaining its robust balance sheet and expects to maintain a strong investment-grade credit rating with a BBB+ or equivalent rating with each of the three main rating agencies.

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About CRH

CRH (NYSE: CRH, LSE: CRH) is the leading provider of building materials solutions that build, connect and improve our world. Employing approximately 78,500 people at approximately 3,390 operating locations in 28 countries, CRH has market leadership positions in both North America and Europe. As the essential partner for transportation and critical utility infrastructure projects, complex non-residential construction and outdoor living solutions, CRH’s unique offering of materials, products and value-added services helps to deliver a more resilient and sustainable built environment. The company is ranked among sector leaders by Environmental, Social and Governance (ESG) rating agencies. A Fortune 500 company, CRH’s shares are listed on the NYSE and the LSE.

Contact:

Albert Manifold – Chief Executive – +353 1 404 1000

Source: CRH plc